As Discussed in the Book, the Rationale for Removing the Secrecy

Multiple Choice

As discussed in the book, the rationale for removing the secrecy surrounding salaries is that

A) we should be honest with employees, and this is a good place to start.
B) they know salaries anyway, via the grapevine, but secrecy reduces confidence in the company.
C) positive motivational consequences may occur if the pay system is well designed.
D) consumers should understand that labour costs contribute greatly to retail prices.
E) a more open pay policy will expose the inadequacy of the merit system.